Originally Published in Today’s Veterinary Business October 2018
Although mentoring is not a new concept in the workplace, modern partnerships are not necessarily like those in the past. According to HR Magazine, formal mentoring relationships in previous eras would have typically lasted at least a year. Informal ones? They could last a decade. In today’s workforce, though, these relationships are often shorter and more specialty-oriented than before.
Because of this shortened timeframe and accelerated pace, lines between mentoring and coaching can be blurred. Increasingly, mentors are no longer necessarily higher on a company’s organizational chart. In fact, reverse-mentoring now exists. In reverse-mentoring situations, newer staff members are teaching older, more experienced ones about new technology, as just one example. As one scenario, a Millennial employee may be teaching her Baby Boomer supervisor about how to effectively use social media and crowdsourcing, while also sharing insights into new ways of thinking about business.
According to a survey taken by the Association for Talent Development in 2017, 29 percent of organizations have a formal program in place for mentoring, with 37 percent of them having an informal one. Mentoring opportunities are also available through professional organizations, either online or in person.
A skilled mentor can help the mentee become his or her best possible self. This happens when a mentor takes the time to really understand the person he or she is mentoring, including where the person is in a career path – and where he or she wants to go, career-wise. Once this is discerned, then each of the actions by the mentors should help the mentees participate in the types of behaviors that allow them to become aligned with their own best selves.
Now, here are seven keys to creating the best possible mentor/mentee relationship.
Key #1 Be very clear about the goals established for the mentoring program.
Are there specific job-related skills that the mentee needs to gain? If so, what are they? Is the mentor guiding someone to an understanding of a practice’s culture? Perhaps the mentee worked for a private practice that was recently bought out by a corporate one, and the mentor is serving as a guide and sounding board to an employee during a transition period. Whatever the goals are, make sure they are clearly defined and understood by all involved parties.
Key #2 Make sure the two participants are well matched.
Synergy and mutual commitment fuel mentoring relationships, so it’s crucial to put the right pairs together. As mentioned above, mentoring is no longer limited to an older and/or more experienced person at the practice mentoring someone younger and/or newer. The goal of this evolving process is to have one member of the team fill in gaps of the skills and/or experiences of another employee, so form your pairings for that purpose. It can be tempting to put together people because they’re so much alike that they’re sure to get along. They probably will get along, but that alone doesn’t fulfill the purpose of mentoring. Remember: fill in experience and skillsets through mentoring opportunities at your practice.
Key #3 Mentoring usually takes significant time and energy, so don’t expect quick results.
There are exceptions to this rule, of course. If a Millennial is paired up with a Baby Boomer to teach the use of Instagram, this can all come together rapidly. If, though, that same Millennial is paired up with that same Baby Boomer to help transition the mentee to a telecommuting role at the practice, this can take time and energy for mindsets to evolve.
Key #4 Multiple mentors sometimes make sense.
Some companies pair up a mentee with a primary mentor and are then open to people having numerous more informal mentors to boost the diversity of the learning experience. It can be very helpful, even enlightening, to have mentors from different demographics – whether that’s age, gender or something else. Being exposed to different points of view from thoughtful members of the practice can be quite beneficial.
Key #5 Mentors should provide guidance rather than setting strict requirements.
Your practice will create an overall structure for its mentorship program and, yes, participants should follow the structure you set. But, a mentor is not there to enforce rules or to lecture. Rather, a quality mentor may spend more time asking questions and listening to answers than speaking, offering advice rather than rock-solid answers. Mentees should be encouraged to listen closely to what a mentor has to say and then carefully evaluate how it fits into his or her life and career path.
Key #6 Mentees should prepare and ask questions.
The best mentoring relationships are two-way streets, with the mentee being an active partner in the relationship. Passive listening will only go so far in helping a mentee develop skills and gain knowledge. Instead, engaged mentees should share what has been helpful, what gaps exist in his or her knowledge base and skill sets, and so forth. In a sense, being mentored should also empower the mentee to pass on knowledge to the next person in the practice who needs assistance.
Key #7 Effective mentoring focuses on relationship development.
Near the beginning of this article, we shared how modern mentoring resembles coaching, at least more so than in the past. But, at its core, mentoring has been and should remain relationship-oriented. The mentee should feel safe and nurtured as he or she learns professional skills through mentoring. Although this knowledge will likely enhance the mentee’s ability to perform tasks, mentoring is not as task-oriented as coaching.
Mentoring should help employees at your practice become more self-confident and able to juggle his or her work/life balance. While coaching can be performance-driven, mentoring focuses on developing the employee, both to improve his or her skills and knowledge today and to prepare him or her better for the future.
Starting a Mentoring Program at Your Practice
Be very clear about what you want to achieve through this program and have a plan in place to measure its effectiveness. Determine who can participate, both as mentors and as mentees. Can someone, for example, volunteer or will you select them? Decide how formal or informal the program will be, how often you expect partners to meet and so forth. Explain the program to your team, adding specifics to the employee manual, and strategically pair up mentors and mentees. Invest enough resources to allow the program to be successful, be available to mentors if they need guidance, and use this program to develop your team in a way that dovetails with practice goals and dreams.
Link to the article on Today’s Veterinary Business: https://todaysveterinarybusiness.com/modern-mentoring/
When you’re new to the workforce, supervisors are typically older than you are, and that just feels like the way the world works. As time passes, though, you may find yourself in a situation where you are older than your boss. In fact, a Harris Interactive survey conducted on behalf of CareerBuilder found that almost four in every ten employees in the United States are now working for a younger boss. And, as increasing numbers of people from the Baby Boomer generation decide it’s time to retire, that dynamic is going to become even more typical.
If you find yourself in that situation, and it’s uncomfortable, what do you do? Here are six tips.
Tip #1 Is It Really Uncomfortable?
People you know may ask you if it’s uncomfortable having a younger boss, and you may be reading articles about how challenging it is to work with Millennials, much less work for a Millennial boss. And, you may subconsciously be connecting the concept of “younger” to “less qualified.” (If so, it may simply help to focus on not stereotyping based on age or any other demographic. It’s easy for anyone of any age to make assumptions based on demographics, but that’s seldom productive.)
The bottom line is that you may be framing your situation as more difficult than it really is. If that seems possible, pause, and really consider your boss and your situation. No perfect boss exists. Is your situation genuinely uncomfortable? If it isn’t, your problem is solved! If it is, tip number two may help.
Tip #2 Why Are You Uncomfortable?
If your discomfort is real, try to decipher why. Do you want to be in a supervisory position yourself? If so, what do you need to do to help make that happen? Or, do you not want a supervisory position, but your ego is bruised because someone younger is higher on your company’s hierarchy? If that’s the case, remind yourself that you don’t want this type of promotion and focus on finding satisfaction in your own job.
Compare your levels of discomfort. If you had the same degree of unease with a boss of an age similar to yours or with one older than you, would you feel this uncomfortable? If having a younger boss makes you more uncomfortable, it may be that this generation performs tasks somewhat differently from you. If that rings true, tip three can help.
Tip #3 Embrace Positive Change
Here’s a litmus test. If you find yourself saying, “But we’ve always [fill in the blank},” stop. Reassess.
It’s only natural to get comfortable performing tasks in a way you’re used to, no matter what age you are. But, it’s highly beneficial (again, no matter your age) to continue to embrace positive change. When you’re able to maintain this attitude, you’ll continue to learn and grow, and this will provide you with opportunities to appreciate the good changes your boss is implementing. If a new technology, process or philosophy feels too strange, try listing positive aspects of it and see if you can focus on them instead of how new and different these changes feel. And, number four can help when interacting with anyone new.
Tip #4 Find Common Ground with Your Younger Boss
Do you and your boss share a true passion for companion animals? If so, then find ways to bond together on that common interest. Also look for other ones, whether work-related or outside the scope of work. You may discover that you both volunteer for the same or similar causes, perhaps a local animal shelter, a service club or a hospice center; have traveled to some of the same fascinating places; or root for the same sports teams. It’s unlikely you’ll spend significant time discussing outside interests during a busy day at the practice, but they can serve as a wonderful wellspring of bonding and allow you to view your boss in a whole new light.
Tip #5 Communicate with Your Boss About Concerns
Despite commonalities you discover, you may also decide that, yes. There are genuine issues that need addressed with your boss. A face-to-face conversation may clear the air, but be prepared to communicate your concerns clearly, without being defensive. Perhaps, for example, you’ve always prepared written reports for company meetings, but now your Millennial boss wants succinct bullet-pointed PowerPoint presentations to share. If you feel, for example, that some information that had existed in your more in-depth reports is now missing or not given enough context, explain that concern and offer solutions. Maybe the PowerPoint slides, in your opinion, would work well but need more detail to share important information.
It’s also possible that your younger boss is using technology that’s new to you, or you aren’t as familiar as you’d like to be with its capabilities and use. If so, then the solution could be to get more training with this technology, either by doing so on your own or through resources offered at work.
Tip #6 Focus on Being a Partner or Collaborator, Not a Mentor
If you’ve worked at a practice for a significant amount of time, or if you’ve been in the veterinary industry for any length of time, you’ve gained valuable experience and knowledge. And, it makes sense for everyone at a practice to pool knowledge to provide the best experience for clients and their companion animals, and to run the practice as effectively as possible.
But, be careful that you don’t lecture or say anything that could reasonably be construed as condescending. Instead, understand what challenges your boss faces and empathetically reason through potential solutions. Share ideas in a way that makes your boss’s work life easier and maintain an attitude of teamwork to create the most productive working environment possible.
Originally Published in Today’s Veterinary Business, March 2018
At your practice, let’s say you have the veterinary nurse of your dreams. Not only is she wonderful with the animals brought to the practice, she is compassionate with their owners. She communicates clearly with your clients; is highly experienced in necessary skills; is always on time; is willing to do her share and more; and avoids gossip, among numerous other positive traits. She is, without a doubt, a star-level veterinary nurse, one you’re extremely lucky to have on your team.
The problem? She is already receiving the maximum pay allowable in her range, according to your practice standards – and a nearby corporate practice is known for wooing away top talent. A cost of living increase is due soon, but that’s not going to make a significant difference in her pay. You may not have this exact same situation at your practice, but practices often face challenges that are very similar. If your practice is, what can you do?
Here are three possibilities, ones you can mix and match for your unique practice needs.
Strategy One: Double-check the Current Market
When is the last time you checked to see the going pay rate for, in this example, veterinary nurses? If it’s a been a while, it’s likely you’ll need to review the pay ranges you’re offering. As a starting point, review this chart of hourly pay amounts being offered in small animal companion practices, according to current key indicators. This is not an all-inclusive list. Rather, it’s step one to help you determine if your practice is on target with pay ranges or if you’ll need to consider some revisions.
||Starting Hourly Compensation: Median
||Starting Hourly Compensation: 75th Percentile
How closely does your pay structure align with these figures? Where you live in the United States will likely affect the local rates paid, but this chart is a start. Is it possible to extend the upper range of your compensation rates to keep dream employees at your practice? Because the economy has remained strong for a while, the reality is that you may continue to lose your top talent if you can’t find ways to compensate them appropriately, and this unfortunate fact will continue to be true until the job market tightens. And, let’s face it. Your best employees will likely continue to find higher-paying opportunities, no matter the economic situation.
If you can’t offer a higher pay rate to a star employee, how you explain salary caps is crucial in your attempts to keep that employee at your practice, so be prepared to sit down and have an honest talk about your practice policies and budgets.
Also, be creative. Can you offer a one-time bonus to fill the gaps as you consider strategies two and three provided in this article? Can you formulate incentive pay structures for your team? This will help your star employees to add to their paychecks, and other employees may also become motivated by these incentives. Win/win!
Strategy Two: Career Opportunities
If you can’t offer more money for the person’s current job, consider what promotion opportunities exist for this employee within your practice and then talk to him or her about the possibilities. How does your star feel about the responsibilities involved in a new position? If the promotion will require more education and/or training, can you help to provide that – or at least do all you can provide a conducive work environment for this transition to happen?
Here, though, is an important caution. Let’s say a supervisory position is open at your practice and it would allow you to pay a star employee more than he or she is currently making. It’s easy to become enthusiastic about the idea of promoting this employee, but it’s also crucial to take your time throughout the promotion process for multiple reasons, including these two:
- You need to follow your practice’s standard policies and procedures each and every time you hire or promote.
- This new promotion may or may not fit your employee’s strengths. If it doesn’t, then not only have you promoted the wrong person, you’ve also taken a star team member out of the position where he or she was shining.
Whether you can or can’t employ strategies one and/or two in your practice, all practices should consider strategy number three.
Strategy Three: Creative Perks
What perks can you offer your employees? One of the most in-demand perks today is more flexible scheduling. And, while you may not be able to offer telecommuting to most of your employees, it may make all the difference in the world to your star employee if you re-arrange schedules so that he or she will have the flexibility to come in to work 30 minutes later in the morning – which allows him or her to see his or her children safely off to school. And/or, you can help to ensure that this employee can always take a lunch break when it’s time to pick up his or her children. In the relatively rare instances when telecommuting can work with a veterinary practice employee, this will likely be a treasured perk.
Caution: make sure you offer perks to all employees in a fair way. Although you do not need to offer the exact same perks to every employee, it’s crucial that you ensure you aren’t discriminating based on race or gender, as just one example. And, even if you aren’t providing perks in a discriminatory way, to keep office morale at a quality level, you also need to make sure you aren’t acting in a way that can reasonably be perceived as unfair. If you are unsure about what is legal, consult your attorney. If you’re unsure about what may cause other employees to lose heart, prioritize coming up with creative perks in the best way for your entire practice, including but not limited to your best employees.
What professional development perks can you offer? How can you help employees who take you up on bettering themselves and improving their skills to juggle all their demands? How can you relax dress codes to a degree that allows your employees flexibility while still keeping a professional look to your practice? In which instances can you allow employees to help choose the technology they will use at work?
When you ask your employees what perks are most important to them, how do they respond?
More about the Pay Plateau
Rather than waiting until a situation arises in which a top performer reaches his or her pay plateau, create a policy on how the situation will be handled and know what conversations you’ll need to have with that employee. How much information will you share about practice financials to help him or her understand why pay plateaus exist where they do?
Know ahead of time what options you can offer that employee (more flexible scheduling, incentive pay and the like), and be aware of those you should avoid. As in virtually every challenge, well thought-out policies and preparation are key.
Click Here for Link to the article Today’s Veterinary Business: https://todaysveterinarybusiness.com/put-on-your-thinking-cap/
Originally Published in Today’s Veterinary Business, April 2018
“Maria’s skirt is awfully short, isn’t it? And she sure doesn’t have the figure to pull that off!”
“You’re not going to believe what I heard about our new client . . .”
“Did you hear who is getting divorced? You’re not going to believe what happened!”
“We’re not getting bonuses this year because of what happened between Fred and Susan.”
“Did you hear why Martin got that raise? And did you hear how much it was?”
Statements like this are heard in workplaces around the country, including veterinarian offices, with victims of gossip being managers, coworkers, clients – and anyone else the gossiper runs across during his or her day. While gossip can contain kernels of truth, stories shared are often blown out of proportion, and are sometimes completely false.
When people who work at a veterinarian’s office gossip, and the manager doesn’t effectively address the situation, the workplace quickly becomes toxic. Some managers don’t address the gossip because they are turning a blind eye (or, more accurately, ear!) to what employees are doing. And, unfortunately, sometimes the managers are active participants in the gossiping, which makes the situation even worse.
Gossip, unchecked, can lead to significant productivity and morale issues. Star employees will likely begin to look for work at another practice, which leads to costly turnover, and significant cases of malicious gossip can lead to legal liability issues for the practice.
So, how should workplace gossip be handled?
Understanding Reasons Why People Gossip
It can be helpful to try to pinpoint why people are gossiping in your workplace. For example, do employees feel as though they aren’t being provided enough information about the workplace and so they are seeking out details among themselves? If the gossip being shared is largely about decisions being made in the veterinary office, then being more transparent about what’s going on can go a long way in quashing the gossip.
Are there trust issues in the practice, especially between employees and managers? If employees don’t trust what their managers say, they tend to rely upon one another to get the real story, and this easily lends itself to creating a gossip culture. Honest and open communicate is key, and that starts with the top.
Other times, certain employees gain a reputation, rightly or wrongly, as someone in the know. If these employees enjoy being perceived as a central source of information, they will continue to play this role to soak up attention. This creates a malignant cycle because, as the information-central employee is rewarded with attention, he or she will likely continue to provide even more gossip. So, what can you do? Once someone regularly engages in gossip, it can be challenging to correct this behavior but it can sometimes be addressed by helping the employee receive attention in positive and productive ways.
Put Policies in Place
Like any other human resource-related issue, employee manuals should contain policies to address the situation, including what is prohibited and the consequences that will occur if someone acts in an inappropriate way. This information should be highlighted during the annual meetings in which the manual is discussed.
It’s important to know the law when writing these policies. For example, it’s tempting to include that employees are not allowed to discuss their salaries – but it isn’t legal to prohibit that. It’s also important to differentiate between harmful gossip and normal workplace discussions. For example, someone might say, “Did you hear that Sara’s cat had six kittens last night? The cat is such a beautiful calico, so I’ll bet the kittens are really cute.”
Technically speaking, you could call this gossip, which can be defined as “casual or unconstrained conversation or reports about other people, typically involving details that are not confirmed as being true.”
The employee is talking about Sara in a casual way, providing details that may not be true. There might have been five kittens – or seven – and maybe none are calico. Or, maybe the cat didn’t even have her kittens yet. But, should that conversation be prohibited by policy?
Define what you mean by gossip. You might, for example, determine that, when conversations about others are disruptive, or have the potential to hurt feelings or damage relationships, that’s gossip. If it drains employees’ morale, that’s gossip.
Model Appropriate Behavior
After a long day, it might be tempting for you – as a veterinarian or practice manager – to make an off-the-cuff remark about a difficult client. But, beware. To help ensure that employees don’t gossip, it’s crucial that you watch what you say. When employees make a comment that can be construed as gossip, you can model how that same concept could be shared in a non-gossipy way or explain why it wasn’t appropriate to say. When an employee occasionally makes comments that cross over into gossip, behavior modeling and employee coaching generally work. Call yourself out, as well, when you slip into behaviors along the gossip spectrum.
Deal Directly with Problem Employees First
If an employee is a hard-core gossiper, then you will need to follow your progressive disciplinary procedure, a process that most likely starts with a verbal warning and ends with termination. Meet individually with a perpetrator in a confidential location and discuss the impact that his or her gossiping is having on other individuals and the practice. Review with each perpetrator the disciplinary procedures that will be followed, and then stick to them, even if it results in firing an employee who resists improving his or her behavior.
It’s important to meet individually with gossipers first, rather than going immediately into a team meeting or sending out an email blast, and here’s why. You might remember being a child in a classroom where a teacher vented about the high absenteeism rate – ranting, of course, to the students who did show up to class. Sending a group email or holding a team meeting without individual counseling and discipline is the grown-up version of the teacher chastising people with good attendance for absenteeism.
When you do meet with your entire team, discuss the topic of gossip on a broad level. Invite your team to brainstorm solutions to help ensure that your workplace culture is as positive and gossip-free as possible. This can include rewarding employees when they share positive news with one another, perhaps giving kudos to a fellow employee who received an important certification or handled a difficult customer especially well (making sure that these “kudos” aren’t really a disguise for gossiping about the challenging customer!).
Finally, you need to protect employees who share instances of gossiping with managers. Ironically, you also need to watch to ensure that this reporting doesn’t become an insidious form of gossip. Remain firm and consistent in your efforts to root out gossip. This process can be challenging, especially if gossiping behaviors have been entrenched into your workplace culture, but the ultimate rewards are significant and worthwhile.
Click link to see article in Today’s Veterinary Business http://todaysveterinarybusiness.com/?s=workplace+gossip
Have you ever looked out your clinic window on a nice day and wished you could smuggle yourself outside for just an hour? Does it sometimes feel like moving a mountain to organize an hour to go to a doctor’s appointment? Who doesn’t want more time away from the office or crowded hospital? Who wouldn’t prefer having more ability to make their own decisions when it comes to work schedules and how your practice conducts its business? Flexibility and getting away from the office are just two reasons why a growing number of veterinarians are making the jump to mobile practice, in some cases leaving the traditional brick-and-mortar practice behind entirely. Perhaps the rise of corporate consolidation, compassion fatigue and the need for greater work-life balance are additional factors driving a sub-set of the profession to consider a different way.
Hitting the road as a mobile practitioner can have a number of benefits but, like everything else, there are also downsides to consider: gas prices, lower revenues, longer days and, of course, traffic! Still, the practice model continues to expand, with a growing number of small animal veterinarians making the switch to a model previously dominated by large animal practitioners. This article will explore some of the complex issues and logistics – along with advantages and disadvantages – that come with this practice model. That’s because, when considering whether mobile practice is the right next step in your career, or if it’s a viable service to add to your existing practice, it’s important to delve beyond the obvious. Now that you’re daydreaming of hitting the road, let’s examine things on a deeper level.
Making the Finances Work
The decision to go mobile must make financial sense. Indeed, this is the barrier most veterinarians see as a road block. Mobile practice, however, is not unlike any other business where viability and profitability come down to expense and revenue. To see if your vision can become a reality, first create a detailed business plan.
A recent article in Veterinary Practice News found the cost of starting a stationary small animal clinic to be approximately $1,000,000 (including most standard equipment). However, a mobile clinic startup cost was estimated to be roughly $250,000, a quarter of the price. Obviously, the equipment you choose, real estate pricing and the scope of your practice all have a significant bearing on the initial startup costs, but there is no denying mobile has a much smaller buy-in. Today’s vet school graduates are likely to have upwards of $135,000 of debt associated with their education, according to recent AVMA data, making investing in a mobile practice seem a more practical choice. As a mobile practitioner, your investment is not subject to all the forces that affect a real estate holding. With brick and mortar, if the neighborhood takes a turn for the worse or you have a dispute with a neighbor, you’re locked in for the long haul. As a mobile clinic, though, you are at the whim of gas prices. Currently gas prices are $2.09/gallon, a significant expense in a vehicle likely to get poor mileage per gallon – and fluctuations in gas prices will also include upward ones, adding to the expense.
Will you be a small, large or mixed animal practice? What are the needs of your intended service area? Understanding your market and where your revenue streams are likely to come from will determine what set up is best for you. Many would argue that having a 26-foot vehicle may not make sense if you only intend to see mostly horses. However, if you are a small animal practitioner and plan to provide a standard of care that is similar to stationary practices, bigger may be better. You may wish buy a larger vehicle to accommodate a dental unit, x-ray equipment and surgical suite. Several companies offer ranges of options for veterinarians from built-ins for trucks and SUVs to vehicles with more square footage than your apartment in vet school. Keep in mind that, as a small animal practitioner, what you gain in fuel efficiency (cost) with an SUV versus 26-footer, you may lose in revenue, having to refer to local practices for anesthetic procedures, radiographs and so forth.
The average monthly expenses as reported in a survey conducted by LaBoit, Inc., a mobile unit manufacturer, were estimated at $6,050 to include vehicle payments, service of vehicle, fuel costs, insurance, supplies, cell line, advertising, pharmacy and professional services. That’s a yearly cost of roughly $72,600. However, this estimated cost does not factor in the most significant expense of any hospital budget: staff salary (including yourself) and benefits. Most mobile practitioners choose to have an assistant to help answer calls, schedule appointments, maintain the vehicle, and various other tasks that work to increase practice efficiency and decrease veterinary exhaustion. As a start, consider two salaries: a veterinarian (you) and a technician. The national median salary for a veterinarian is $87,590 and, for a technician, the average salary is $31,070. To more closely approximate actual cost per employee, it is recommended to multiply salaries by a factor of 1.5 to include benefits and other employer costs. Then there are practice insurance policies, marketing, taxes, accountant fees and possibly fees for a payroll service.
On the upside, mobile practices have the added perks of no property taxes and no rent! Purchase of larger veterinary mobile units comes with the benefit of free marketing as you are essentially driving a billboard around all day. If the schedule is open, strategic parking can result in high visibility and real bang-for-the-buck marketing.
How wide of an area will you cover? This is paramount when establishing your business plan. If you plan to cover a large swath of a county, you’d better have either a fuel efficient vehicle and/or a higher than average client transaction to counter the simple fact that a larger area means more transit time. Maybe you can serve a large area but only visit the northern part of the county on Mondays and Wednesdays, and book the southern part on Tuesdays and Thursdays. Not unlike your traditional stationary clinic, there must be sufficient population to not only support but to grow the practice over time. The beauty of mobile practice, though, is that you can go where the clients are and you have the freedom to refine your territory for maximum efficiency.
According to an informal survey of mobile practitioners who purchased units from LaBoit, Inc., the average house call fee was $50. It should be noted that this fee is assessed to clients for your driving to them and the convenience that provides. Some practitioners develop a stratified house call fee schedule based on the amount of miles a call would be from a central location on a map.
House call fees may highlight another difference between large animal and small animal mobile clientele. A large animal client may view you driving to them as a necessity, not a convenience, making a $50 to $60 fee unpalatable to some. If you are planning to offer small animal service, understand that the cost of the practice model must be shifted to the clients, so be sure the market you serve would tolerate the $50-$60 more per transaction that is necessary to offset the cost of keeping gas in the tank.
Let’s do some math:
Days of operation X average transactions X number of clients per day X weeks in a year = average gross revenue
If we fill in numbers reported in the LaBoit survey, we get:
5 days/week X $250 average transaction X 5 clients/day X 50 weeks/year = $312,000
While this number may be underwhelming when you look at revenue from a multi-doctor stationary practice, the key is of course to consider the other factor in determining profit: cost.
$312,000 revenue – 250,590 cost = $61,410 profit
You must also have a realistic financial project that accounts for building a client base from zero. If your projections are accurate and the business is able to stick to the budget in your business plan, you should have some profit left to reinvest in your practice. Maybe you purchase a new piece of equipment, invest in marketing or reinvest in staff.
Form a Business Entity
The rules and tax benefits that govern what type of business entity you may wish to form varies from state to state. In some states – California, for example – veterinarians are not allowed to operate as a limited liability company (LLC) or a limited liability partnership (LLP). As such, California veterinarians form entities such as a sole proprietorship, partnership or corporation, under which they conduct business. Forming a corporation can protect its owner(s) or shareholders from being personally liable for any corporation obligations, liabilities and/or debts. The two main flavors of corporations are “C” and “S” corporations. With an “S” corporation, in the event of practice sale, there is only one tax levied upon the sale, whereas with a “C” corporation the sale is double taxed. For these reasons, the great majority of veterinarians choose to form “S” rather than “C” corporations. It is imperative to seek out the advice of a knowledgeable corporate accountant on which business entity is best for you.
Financing the Operation
Veterinarians often need to seek out loans to finance this operation. This is when a well laid out business plan can really help, as it provides the critical information lenders need to assess the viability of your business and your ability to pay them back. If you have less than 20% of the total cost in your own funds to contribute, you’ll likely need an SBA lender. Depending on your personal financial profile, credit history and business experience, the amounts, rates and terms will vary. In addition to financing through veterinary lenders, (Live Oak, B of A, Wells Fargo), many of the companies that manufacture mobile veterinary vehicles have financing programs in place. You can also investigate local lenders and private investors. It’s important to shop around for the best interest rates and terms for your loan to help bolster the short and long term financial projections. LaBoit, Inc., Dodgen, Bowie, Magnum and Faber are the major players serving the mobile vet market with custom built vehicles.
Other Startup Costs
Initial supply orders can be a heavy upfront cost in any startup, but luckily many vendors offer discounts and payment plans that help with cash flow early on. Regardless of the size and scope of your mobile practice, your initial order will be a fraction of that expected in most stationary clinics. A survey of mobile veterinarians published in DVM360 listed the equipment considered essential to mobile veterinarians, which included: digital scale, portable x-ray machine, portable ultrasound machine, centrifuge and dental equipment. Some of these may come with your custom built unit and be included in the price, while others will need to be separately financed. As a rule of thumb, a startup practice should be able to generate a positive cash flow by about the sixth month.
Insurance, Permits and Paperwork
The AVMA PLIT website has a list of insurance policies packaged for mobile practitioners. For the most part, policies such as workers compensation and employment practices liability are similar to those recommended in stationary practice. Having business/commercial auto insurance is essential in protecting your investments and allowing company employees to drive the vehicle. A general business owner (BOP) policy will protect personal business property in your home, vehicle and temporary off-premise sites like client’s homes. A BOP policy will also cover general liabilities not covered in auto, malpractice or employer coverage.
A business license, DEA license, current state veterinary license and, in some states, controlled drug license are required for mobile practices. A veterinary premise permit may be required, depending upon the state you intend on practicing in: for example, California, Florida and Arizona, among others. The laws governing DEA licensing and veterinary medicine are often a bit gray. Some hospitals will have one DEA license under which associates prescribe drugs within the practice. In the case of mobile practice, you will either be a solo practitioner or likely to not always be present when an associate prescribes/uses drugs, making it a necessity for each DVM to have a DEA license.
Taxes can be a significant drain on a small startup business. If you use your vet-mobile for a combination of personal and business use, then your mileage can be tax deductible. If you use the vehicle for business uses only, then you would not claim mileage but, rather, depreciation. Certain other expenses associated with mobile practice may be deductible, as well, such as gas and maintenance. Understanding tax benefits can be challenging and many veterinary practice owners rely on advice from their tax accountants.
The appeal of being out of the hospital and owning your own practice is obvious and many mobile practitioners list one or both of these two lifestyle perks as being reasons to make the leap into mobile practice. However, there are several drawbacks to the mobile lifestyle you should consider. To serve enough clients per day to generate healthy revenue, it may be necessary to work long days or maybe six days per week. Ultimately this will depend on your fee schedule and the area you plan on servicing, but by the nature of having to drive to your clients, your efficiency will suffer.
Mobile practice can also be more physically and mentally demanding for some. Most stationary practices will offer 20- to 30-minute appointments, of which you may interact with the client for 10 to 20 minutes. In mobile practice, your appointments general run much longer (30 to 60 minutes), hence the appeal for many clients. This means you must be “on”: personable, engaged and social for up to an hour at a time with each client. If you find it difficult to make small talk and general conversation with clients, mobile practice is not for you. As a mobile practitioner, you may be called to place a catheter, draw blood, clean kennels and restrain patients for radiographs, whether or not you choose to have an assistant. Then there’s the traffic and the exhaustion of driving a huge vehicle around town, navigating narrow streets or deciding whether or not your truck will get stuck on that dirt road up ahead. Driving, jumping in and out of a truck, and carrying equipment are all part of the gig that can further contribute to an already physically demanding job, and result in exhaustion.
Having said all that, as a former mobile practitioner technician, I can tell you there is something that feels alluringly right about playing fetch with your patient for 10 minutes after catching them up on their vaccines or examining the cat from hell on the kitchen table without so much as a flick of the tail.
According to recent Bureau of Labor Statistics data, the projected veterinarian employment growth rate is healthy, expecting to grow by 9% between 2014 and 20245. This rate is slightly above average expected growth for all occupations (7%), so this is the good news. The bad news is that, for young vets looking for opportunities to own a practice, inventory is limited and continues to decrease each year. With corporate consolidations up to about ten percent of the practices, the independent practitioner is forced to compete with juggernauts.
Mobile service, though, can offer clients a stark contrast to the corporate model and elevate service to a new level. Mobile care is a boutique offering with highly individualized personal care, provided by one or two faces. The mobile model may just be the antidote for corporate consolidation in some areas already dominated by giants and the best option for ownership for the next generation of entrepreneurs. The question remains: how is the market expected to grow for mobile service? A 2002 TIME magazine article noted a steadily growing number of veterinarians who are offering house calls or opening mobile services, with membership in the American Association of Housecall Veterinarians (AAHV) increasing 150% compared to the past decade. LaBoit, Inc., at that time, reported seeing sales increase 40% over each of the past five years. Unfortunately, there is little current published data specific to mobile practice, but that does not mean we can’t assess clients demand for this service.
In 2015, it became official: the millennials have taken over. That is, a Pew research poll indicates millennials are now the largest living generation. What does this have to do with mobile practice, you may ask? A recent study conducted by Trone Brand Energy published in DVM360 shows that 59% of millennials say their veterinarian takes the time to know them, compared with 64% of boomers. The study shows that millennials are less likely to think their veterinarians are very accessible (47%) compared to boomers (78%). Taken together, this suggests that this demographic is looking for accessibility and desires a more personal relationship with their veterinarian to develop a bond of trust.
Another Pew poll found that more than half (53%) of all working parents with children under 18 say it’s very difficult to balance job responsibility with responsibilities to the family. Mobile practice offers a solution. You can have your family pets’ health care needs met while you make dinner or when the new baby goes down for a nap. The client is waiting at home for their appointment and can work, do laundry or cook while they wait. Here, a choice no longer has to be made between the responsibilities to their pets’ health and life’s demands. Is it worth an extra $50 to a mother with three kids to get the two dogs and the cat a medical visit without having to load everyone up into the minivan? Many families would say: absolutely.
Furthermore, since the advent of the internet and the tremendous access to information, today’s client is often more knowledgeable. Clients feel empowered and seek more of a role in the partnership relationship they share with their veterinarians. Emphasis is on the word relationship. Clients seek transparency and active engagement in their pets’ health care. Mobile care offers more of an opportunity to build relationships with owners and to educate them. Mobile service is uniquely suited to provide transparency on both sides of the exam table. When clients can watch you work, they feel involved and can have a greater appreciation for the service you provide.
AVMA published the Bayer Veterinary Usage Study in 2011 that examined the industry’s declining revenues and number of visits (usage). The study cited what they called “feline resistance,” in which data indicated that because many cats hate being loaded into carriers for transport to the vet, 40% of them had not been to the veterinarian within the past year, as compared with 15% of dogs. Owners reported that their cats show signs of stress during veterinary visits, which lead to deferred trips. Many cat owners expressed a desire to avoid the difficulties and unpleasantness associated with bringing their cat to the veterinarian. Perhaps “feline resistance” explains why only 83% of cat owners who responded to the survey said their animal had a primary veterinary clinic, compared with 91% of dog owners. Mobile practice can help bridge this gap by alleviating the unpleasantness, providing health care to the family cat all while tapping into a sizable new revenue stream. The same concept likely also applies to fractious dogs or multi-pet households who under-utilize veterinary care simply due to stress involved with taking their pets in for an appointment.
Getting into the mobile veterinary business is a creative opportunity that offers unique rewards, benefits and opportunities, along with challenges, to practice the profession you love in a whole new way. Mobile practice has a growing role to play in the profession and may represent the most viable path to ownership for the younger generation of veterinarians. Before you hit the open road, though, make sure you’ve got the right road map to guide you.